How to Increase SaaS User Conversions from Freemium to Paid Plans by iridize
How to Increase SaaS User Conversions from Freemium to Paid Plans
May 10, 2015
Which free plan model is right for your business? How do we engage users successfully? Are changes allowed? Lessons we learned as a startup and now want to share with our peers. Enjoy!
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The Data
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Which is better for SaaS – Freemium or Free Trial?
Unfortunately, there is no simple answer. It
depends on the nature of your service and on your
user-base.
Image source: Stuart Miles @ FreeDigitalPhotos.com
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Conversion from SaaS
Freemium is a link in
the chain of a
successful onboarding
and adoption process.
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There is no single
neat trick for
getting free users
to randomly
decide to start
paying. So we put
conversion in the
right context.
Img source under CC license: http://www.flickr.com/photos/pasukaru76/5944308910
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Balance should
be maintained
between two
parameters: Source: http://www.flickr.com/photos/29174632@N00/2208944056
Is Freemium
right for you?
Ask yourself:
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Balance should
be maintained
between two
parameters: Source: http://www.flickr.com/photos/29174632@N00/2208944056
It’s safe to assume the
average SaaS user “tries
out” 1-3 services/ webapps
a week. Lengthy onboarding
processes are less effective.
A Freemium SaaS plan will
work only with a simple
service.
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The consensus is that conversion
rates for Freemium services are
around 2-3%.
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If you are a B2C service, you will need to
establish a huge free-user-base until you
can convert those 2-3 out of each 100
users.
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If you are an SMB or
startup, you will need
to hold on for a long
time, raise funds and
find investors before
this business model will
work. Img source: stockimages @FreeDigitalphotos.net
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However, if you’re a
B2B – you’re in luck:
business owners are
more likely to spend
money on services and
applications than
individual users.
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If you are still
debating which free
software model is
right for you, read
our SaaS free trials
conversion to paid
plans Slideshare.
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How to
Engage Users
with the
Freemium Model?
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A common Freemium strategy: provide a
service that becomes indispensable.
Eventually, your users will have to upgrade
their account so as not to lose their storage
space/ data.
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Balance the free/paid plans:
The free plan is
enough for base
users.
The paid plan is where free
users will want to expand and
grow into. Loyal, long-time
users naturally evolve into
power users.
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Earn your users’
loyalty. Do that by
providing stellar
customer service and
by being upfront and
frank about the
upgrade options.
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LinkedIn is a terrific
example: the average
professional can enjoy
the platform’s many
services and opt to pay
only if they want a
specific set of helpful
tools.
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Stellar
Customer Service
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Customer service is perhaps the single most
important expression of care and concern a
software service can show its users.
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Changes
are
allowed
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Good news: your
users are well aware
that you are a
budding business or
a startup.
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Implement them gradually
Over-communicate them in
advance.
Your users will be tolerant toward
changes in your interface, pricing
model and features – so long as you:
Why Iridize Mobile? We Hope That Was Helpful!
Read more about onboarding solutions at blog.iridize.com Or request a demo at [email protected]
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Icons in this presentation made from Flaticon.com: Freepik by
iridize.com
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